Expansion project will be financed primarily by $8.5 million bond sale

These are heady times for Kapco Inc.

The Grafton-based metal stamping company has announced plans to construct a 76,850-square-foot addition to its main manufacturing plant and headquarters at 1000 Badger Cir., essentially doubling its usable space.

The company is seeking $8.5 million in industrial revenue bonds through the Grafton Village Board.

The bond agreement would not obligate the village financially, but allows Kapco to take advantage of the municipality’s federal tax-exempt status.

Action on the revenue bonds was tabled by the Village Board on Monday, allowing for time to review wording.

Once secured, the money will also be used to make renovations at the company’s existing plant and to pay off old debt.

Kapco secured $2.9 million in industrial revenue bonds in 1997 to finance the construction of its headquarters.

Village Administrator Darrell Hofland said that, if approved, the $8.5 million will be the largest revenue bond ever issued by the village.

“It is good news. Kapco is an important business for many reasons. They are a great community partner and have a large employee base,” Hofland said.

The addition will be on the north side of the existing 82,010-square-foot facility, which was built in 1997.

According to the company, the addition will allow it to add 100 jobs over the next three years.

The firm has repeatedly been named one of the area’s fastest-growing companies by the Milwaukee Business Journal. It currently has more than 400 employees.

Just last month, the village’s Plan Commission approved a conditional-use permit allowing Kapco to use the former MPI Coin building, 983 Badger Cir., for additional metal-stamping operations.

Company officials said about 12,000 square feet of that 24,271-square-foot building would be used for manufacturing, with the balance used for administrative and management staff.

In the conditional-use permit request, the company said it would have 30 to 70 employees working Sundays through Fridays at the former MPI Coin site.